Dubai’s prime residential sector is poised to lead the global property market in 2025, with capital values anticipated to rise by up to 9.9%, as per research conducted by Savills.
This projection follows Dubai’s strong performance in 2024, during which prime residential capital values appreciated by 6.8%, while rental values experienced a significant surge of 23.5%.
The city’s rental market is expected to sustain its growth momentum, with forecasts suggesting an increase exceeding 10% in 2025.
Dubai continues to attract international investors as its prime residential sector flourishes. The demand for high-end properties surpasses supply in several of the city’s most desirable communities. The robust rental market and capital appreciation make Dubai an increasingly appealing choice for global investors. Andrew Cummings, Head of Residential Agency at Savills Middle East, noted that 2025 is likely to see further growth, with high-value transactions and new ultra-luxury developments reshaping the real estate landscape.
The city’s rapid expansion is largely driven by an influx of high-net-worth individuals (HNWIs) and family offices relocating to the UAE. This trend has fueled the launch of ultra-luxury projects, redefining the concept of prime property in Dubai.
While Dubai’s real estate market thrives, global trends tell a different story. Savills’ projections indicate that average price growth across 30 major cities is expected to be 1.6% in 2025, a decline from 2.2% in 2024.
Despite economic challenges in recent years, prime residential markets have demonstrated remarkable resilience. With 2024 being a year of political transitions across various countries, 2025 is expected to usher in policy changes related to taxation, legislation, and international relations, all of which could impact prime residential property markets, according to Kelcie Sellers, Associate Director at Savills World Research.
Dubai’s prime real estate market currently commands an average price of $930 per square foot (€9,200 per square meter). Many international investors prefer renting before making a purchase, further driving rental market growth in 2024.
Looking ahead to 2025, Dubai’s property sector is projected to maintain its upward trajectory, outperforming global markets such as London, Hong Kong, and New York. With sustained demand for branded residences, waterfront developments, and eco-friendly luxury homes, the city continues to solidify its status as a premier destination for prime residential investment.
